The Rich Somers Report ADU Investing 101: What No One Tells You | Andrew Greer E423
Nov 13, 2025
In this conversation, real estate developer Andrew Greer shares his expertise on accessory dwelling units (ADUs) and their potential for profitability. He explains how to identify real ADU opportunities amid market oversaturation and discusses the benefits of the new AB 1033 law allowing backyard sales. Greer reveals the rapid construction timeline of prefab ADUs and the cost savings they offer. He emphasizes the importance of thoughtful unit design, optimal parking, and the risks of cutting corners in development. This talk is a must-listen for aspiring ADU investors!
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Small-Unit Oversupply Harms Returns
- Oversaturating with tiny ADUs can kill rents and increase vacancies in San Diego.
- Builders dumping many studios without parking face heavy concessions and turnover.
Focus On Family-Size Units With Parking
- Prioritize three-bedroom, two-bath ADUs with parking as your core product in Southern California.
- Choose garages or carports depending on neighborhood to maximize rentability.
Sell Your Backyard With AB 1033
- Use AB 1033 to condo-map backyard ADUs and sell them as individual homes with separate APNs.
- Implement HOAs and shared-use agreements to manage shared infrastructure and liabilities.